FINE 2000 Lecture Notes - Lecture 3: Accrual, Investment, Retained Earnings

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mag0sea

10 Jan 2017

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The statement of financial position or balance sheet. The (cid:271)ala(cid:374)(cid:272)e sheet sho(cid:449)s the (cid:448)alue of the fi(cid:396)(cid:373)"s assets a(cid:374)d lia(cid:271)ilities at a pa(cid:396)ti(cid:272)ula(cid:396) poi(cid:374)t i(cid:374) ti(cid:373)e. Current assets (most liquid forms of assets) Non-current assets (assets of an investment nature) Current liabilities (short-term and current portion of long-term debts) Ha(cid:396)eholde(cid:396)"s e(cid:395)uity (cid:894)diffe(cid:396)e(cid:374)(cid:272)e (cid:271)et(cid:449)ee(cid:374) total assets a(cid:374)d total lia(cid:271)ilities(cid:895) Long-term assets such as buildings, plant, equipment, etc. Shown on the b/s at their original cost net of accumulated depreciation. Long-term assets such as brand names, patents, copyrights, manpower, etc. Liabilities represent money owed by the firm to its creditors. Current liabilities (paid within an year) e. g. a/p and bank loan. Long-term debt (represent debts that are due after 1 year) What is left o(cid:448)e(cid:396) afte(cid:396) all of fi(cid:396)(cid:373)"s lia(cid:271)ilities/o(cid:271)ligatio(cid:374)s ha(cid:448)e (cid:271)ee(cid:374) paid off belongs to sha(cid:396)eholde(cid:396)"s a(cid:374)d is (cid:272)alled sha(cid:396)eholde(cid:396)"s e(cid:395)uity. Capital represents amounts raised from the sale of the (cid:272)o(cid:373)pa(cid:374)y"s sha(cid:396)es to i(cid:374)(cid:448)esto(cid:396)s (cid:894)e. g. (cid:272)ash and common shares)

Related Questions

Create a Sources and Uses Statement using this Balance Sheet:


BALANCE SHEETS
(In millions)

	June 30, 2016	June 30, 2015
Assets
Current assets:
Cash and cash equivalents	$6,510	$5,595
Short-term investments (including securities loaned of $204 and $75)	106,730	90,931
Total cash, cash equivalents, and short-term investments	113,240	96,526
Accounts receivable, net of allowance for doubtful accounts of $426 and $335	18,277	17,908
Inventories	2,251	2,902
Other	5,892	5,461
Total current assets	139,660	122,797
Property and equipment, net of accumulated depreciation of $19,800 and $17,606	18,356	14,731
Equity and other investments	10,431	12,053
Goodwill	17,872	16,939
Intangible assets, net	3,733	4,835
Other long-term assets	3,642	3,117
Total assets	$193,694	$174,472

Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$6,898	$6,591
Short-term debt	12,904	4,985
Current portion of long-term debt	0	2,499
Accrued compensation	5,264	5,096
Income taxes	580	606
Short-term unearned revenue	27,468	23,223
Securities lending payable	294	92
Other	5,949	6,555
Total current liabilities	59,357	49,647
Long-term debt	40,783	27,808
Long-term unearned revenue	6,441	2,095
Deferred income taxes	1,476	1,295
Other long-term liabilities	13,640	13,544
Total liabilities	121,697	94,389
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,808 and 8,027	68,178	68,465
Retained earnings	2,282	9,096
Accumulated other comprehensive income	1,537	2,522
Total stockholders' equity	71,997	80,083
Total liabilities and stockholders' equity	$193,694	$174,472

harlequinimpala927

Arrange the following items in proper balance sheetpresentation: (Amounts to be deducted should be indicatedwith parentheses or a minus sign.)


Accumulated depreciation	$	391,000
Retained earnings		35,000
Cash		19,000
Bonds payable		174,000
Accounts receivable		49,000
Plant and equipmentâoriginal cost		741,000
Accounts payable		37,000
Allowance for bad debts		6,000
Common stock, $1 par, 100,000 shares outstanding		100,000
Inventory		68,000
Preferred stock, $54 par, 1,000 shares outstanding		54,000
Marketable securities		21,000
Investments		27,000
Notes payable		36,000
Capital paid in excess of par (common stock)		92,000

Balance Sheet
Assets			Liabilities and StockholdersâEquity
Current Assets:			Current Liabilities:



			Total current liabilities
			Long-term liabilities

Net accounts receivable
Total current assets			Total liabilities
Other Assets:			Stockholdersâ Equity:


Fixed assets:


Net plant and equipment			Total stockholdersâ equity
Total assets			Total liabilities andstockholdersâ equity

whiteweasel907

P5-3 Preparing a Balance Sheet and Analyzing Some of Its Parts LO5-3

Exquisite Jewelers is developing its annual financial statements for 2015. The following amounts were correct at December 31, 2015:

cash, $58,000; accounts receivable, $71,000; merchandise inventory, $154,000; prepaid insurance, $1,500;
investment in stock of Z corporation (long-term), $36,000; store equipment, $67,000; used store equipment held for disposal, $9,000;
accumulated depreciation, store equipment, $19,000; accounts payable, $52,500; long-term note payable, $42,000; income taxes payable, $9,000;
retained earnings, $164,000; and common stock, 100,000 shares outstanding, par value $1.00 per share (originally sold and issued at $1.10 per share).

Required:
1	Based on these data, prepare a December 31, 2015, balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
	Possible input areas are shaded.

	EXQUISITE JEWELERS
	Balance Sheet
	December 31, 2015
	Assets
	Current assets:





	Total current assets		$ -
	Long-term investments:


	Fixed assets:



	Total fixed assets		-
	Other assets:


	Total assets		$ 377,500
	Liabilities
	Current liabilities:



	Total current liabilities		$ -
	Long-term liabilities:


	Total liabilities		-
	Stockholders' Equity
	Contributed capital:



	Total contributed capital	-


	Total stockholders' equity		-
	Total liabilities and stockholders' equity		$ -

Required:
2	What is the net book value of the store equipment?

	Net book value

taupedonkey505

FINE 2000 Lecture Notes - Lecture 3: Accrual, Investment, Retained Earnings

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